Key insights:
- Long-term car rentals offer flexible access to a vehicle for weeks or months, making them ideal for temporary needs like seasonal work or trying out a car before buying
- Requirements are similar to short-term rentals, with added considerations like mileage limits and billing cycles
- Alternatives such as leasing, car-sharing services or buying a used car may be more cost-effective in some cases
When you hear the words “car rental,” your mind might flash to getting a vehicle for a vacation or a quick weekend getaway. But did you know that you can also rent a car for several weeks, months or even up to a year? Long-term rentals are a great option if you don’t currently own a car but find yourself needing one on a temporary basis. Keep reading to learn more about how long-term rentals work and whether this option is right for you.
When does a long-term car rental make sense?
A long-term car rental can make sense in several situations:
You’re not ready to buy a car
If you want the convenience of a vehicle but aren’t ready to commit, a long-term rental can be a great way to try out a car and see how it feels during everyday use. Some rental companies even let you swap your vehicle as many times as you want.
You need a car for a specific long-term purpose
Perhaps you don’t own a car but accept a seasonal job that requires you to drive, or you’ll be traveling for work for an extended period in an area without reliable public transportation. A long-term rental can provide week-to-week or month-to-month flexibility without the commitment of buying a car, and you won’t have to worry about storing or selling the car when you no longer need it.
You’re on a budget
Depending on the car you rent, long-term car rentals may be more cost-effective than monthly car payments. However, this isn’t guaranteed, as factors such as the type of car, premium add-ons, mileage and insurance all affect the total cost of a rental.
Renting a car also has a smaller impact on your creditworthiness than leasing or buying. While leasing a car requires a credit check and adds an installment loan onto your credit report, renting a car doesn’t require any inquiries into your credit unless you pay with a debit card.
What do I need to rent?
Renting a car long-term requires many of the same documents as a regular, short-term rental.
Most rental companies require a valid driver’s license and a credit or debit card to book a car. If you pay with a debit card, you may be required to provide an additional form of ID, such as a passport. In most states, you can rent a car starting at age 21. If you’re under 25, however, you may be required to pay an additional fee for being a younger driver.
Check the terms and conditions of the rental agreement before signing. Some rental companies will rent a car for a certain period or number of days, while others bill on a month-to-month basis. Check to see if you get unlimited mileage or if you have to pay for the mileage you use.
Alternatives to a long-term car rental
Here are a few alternatives to consider if a long-term car rental doesn’t meet your needs:
Lease a car
A short-term lease from a car dealership may be slightly more cost-effective than a long-term rental. However, there are usually mileage limits on leases, and the terms of your lease is based on your creditworthiness and may require a co-signer. You also won’t be able to exchange car models during the lease period as you often can with a long-term rental.
Use a peer-to-peer car-sharing service:
Peer-to-peer car-sharing services may be a more flexible car rental option. Instead of a rental company lending out massive fleets of cars, these services allow individuals to rent their personal cars for short- and long-term use. If there’s a car share in your neighborhood, it may be more convenient than making your way to a rental agency, which are often at out-of-the-way locations like airports. Be aware that your insurance policy may not cover a car share the same way it covers a long-term rental.
Buy a used car
If buying a car isn’t completely out of the question for you, you might consider finding a used car that fits your budget and needs. This way, you’re putting your money into an asset that you can potentially resell a few months or years down the road.
Is a long-term car rental right for you?
A long-term car rental allows you the freedom of regular car use without the pressure of lease payments or regular maintenance. Spend some time researching your local rental companies and see what types of long-term plans, price points and car models are available. If you’re looking to compare prices on car rentals, consider booking through Citi Travel® to take advantage of competitive pricing and flexibility, exclusively for Citi® cardmembers.
Disclosure: This article is for educational purposes. It is not intended to provide legal, investment, or financial advice and is not a substitute for professional advice. It does not indicate the availability of any Citi product or service. For advice about your specific circumstances, you should consult a qualified professional.
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